The State Department store is the largest shopping mall in Mongolia, a leftover of the Soviet occupation. It was established 91 years ago, in 1921. It is the biggest shopping center in Mongolia, with 35000m2 space. In www.lonelyplanet.com State department store is #30th thing to do in UB out of 194. Known as ikh delguur or ‘big shop’, the State Department Store is virtually a tourist attraction in itself, with the best products from around the city squeezed into one building. The department store is one of the main attractions in the city and focuses on providing excellent services and world-class shopping experiences in chic and sumptuous environment. State Department Store’s common features are that they are focused on the customers meeting with the high quality of the products range in the pleasant environment and customer service. Also they serve the customers through well located 25stores in Ulaanbaatar city. The biggest one is State Department Store. All of our customers have high expectations for services, knowledge, differentiated and the latest products with highest quality. We are introducing the newest and the latest fashionable, stylish and good quality goods in a pleasant and luxury ambience. Floor planning of the department store is:
•The main floor is filled by of Nomin Supermarket, glorious brand watches and jewelries and also in their outdoor they locate the cars of their Nomin Motors. Customers are really satisfied by reconstruction of the main floor. Based on reviews people think that the Store designs are became more high-class than before look. •The second floor is for women. They represent the best cashmere and wool ready to wear products for women and men, also cashmere products are surrounded by well-known brand products merchandised by Nomin fashion. Of course if this floor is for women then probably footwear will be included.
•The third floor carries an incredible selection of brand-name apparel and ready to wear for men’s and children’s clothes, accessories and sports wear from contemporary fashion to quality basics for “Shoes Gallery” – wide selection of shoes and leather goods boutiques for men. •On the fourth floor they offer a broad range of home accessories and textiles, bath and beauty products, furniture, as well as home accents on the forth floor along with camping and fishing gear store. •On fifth floor they have Fitness club along all kind of electronic goods. •On sixth floor customers can enjoy the time and rest by having some meal with driks. Behind the food courts they have the biggest book store which is divided into many topics of books.
The results of following research show the purposes of going to State Department Store. This include whether customers are willing to shop there or not. In this primary research, researcher questioned 32 customers. 2.1 Purposes
It shows that most customers go to Sky Shopping Center because of presence of supermarket with 22%. Followed by Location with 19% and eating out with 16%. Since Sky Shopping Center is near the hub center of Mongolia, it attracts many customers. Specifically, Sky Shopping Center opens at 9 a.m. in summer time and closes at 10:30 p.m. However, in winter time store opens at 10a.m. and closes at 10p.m. This might affect the trend.
Furthermore, the result of following research shows what customers are happy/like about Sky shopping center. The researcher interviewed 19 people. It shows that 26% of customers like Sky Shopping Center because of variety products, also 11% of customers are happy about the service of supermarket in Sky Shopping Center. Also 11% of customers like different banks in one place. Another 2 reasons customers happy about it, is bonus card and comfort. Only 5% of customers said that they like updated products, books, comfort in Department Store and self-service. 5% of the customer answered he/she doesn’t like anything about Sky shopping center.
In addition, the result of following research will show what customers are not happy/dislike about Sky Shopping Center.
In this graph it shows that 37% of customers are not happy about, in fact they hate Sky Shopping Center’s service. 11% of customers said that they don’t like parking lot, prices are too high and sometimes the store is overcrowded during some season or time. 10% of customers dislike Sky shopping Center’s clothes outlet, they said that the clothes are fake, not stylish and expensive. 5% of customers answered that products are dusty overall it seemed dirty. Foreign customer answered that some products descriptions are not in English, so that he/she couldn’t know about the product. Also, in Sky Shopping Center in front of elevator, it said ‘’be aware of pick pocket’’, to some customers, 5% of customers, it felt uncomfortable and not secure.
Finally, the result of following research shows that which area customers most likely to go in State Department Store.
In above graph it shows that, 26% of customers would like to go to electronic area, which is on 1st floor and 16% of customers most likely to shop in supermarket and at flower shop. 11% of customers like Sky Shopping’s books area. 5% of customers like to shop in jewelry section, cashmere area, women area, eat in fast food and customers most likely to shop in dry cleaner section. One customer, who said doesn’t like anything about it, also answered doesn’t like any area.
The researcher observed all 3 floors of Sky Shopping Center. At 1st floor in flower section and in jewelry section customers are higher than in other sections but lower than supermarket area. There is accessory outlet in the main hall of the 1st floor and most customers tend to gather there. There is a pharmacy and CD shop near the main hall, however not many people are into them. Going to the basement, there is an electronic product section. Since the area is small, the section looked overcrowded. On 2nd floor, there are jewelry shops and hair saloon. The queue seemed long for the hair salon as it is one of the best for hair service. Supermarket is packed as usual and one thing Sky Shopping Center should look into is that the cosmetics shop is on the same platform with the supermarket.
This gives an idea to people that the hygiene level is not secured and monitored well. On the 3rd floor in cashmere section customers are very active, men and women were trying on cashmere clothes and mostly buying it. Clothes section has branded clothes including Mexx, Miss Sixty, Tom Tailor and Diesel, those clothes were stylish but too expensive. Some clothes price is overstated and seems fake. Overall the items displayed on the panels are extremely expensive despite their low brand images. Women and men’s clothes section are located in the same 3rd floor. This makes it difficult for women to try clothes when there are men roaming around. I felt the environment were uncomfortable to shop for clothes. 4.0 Recommendation
Based on the research, the researcher found out that service is one of the major considerations affecting the customer’s positive experience. Therefore, Sky Shopping Center’s first consideration will be improving service by providing better HR (Human Resource). The company should train their staff to be more approachable, knowledgeable, positive, kind, helpful and always smiling to the customers. Sky Shopping Center has variety of products, so consumers couldn’t find what they were looking for or spent a lot of time to search it. Therefore, the company should have more big tags of the brand name or the company should have maps about their product location and follow up with Wall-Mart style. Also, on each floor, Sky Shopping Center should provide directory for improving the customers’ experience. Through this, the customers do not have to roam around the place to look for the products they want.
Additionally, the company should consider about pricing. Even though the Sky Shopping Center has dominant brands, but price tags are too ridiculous. This might chase away customer who want to buy decent clothes with reasonable price. Few consumers were not happy that their products are dusty and floors are dirty. Thus, Sky Shopping Center should hire more staff to clean the store and products. Having bilingual salespeople could attract foreign customers who supposedly have better purchasing power than an average Mongolian. Finally, in book section, a lot of books printed in Mongolia. However, college students, adults and even teenagers want to read English books. Therefore, the company should export more English and modern books.
Malhotra, N. K. (2004). Marketing Research. New Jersey: Pearson Education. Nomin Holding. (2011). Retrieved May 28, 2011, from Nomin: http://www.nomin.mn/holding/#News/46